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HOW TO USE ORGANIZATION DESIGN TO BUILD STRATEGIC CAPABILITIES

As was noted above, the organization design process is made up of a series of choices and decisions. In any decision-making process, clear criteria serve the purpose of allowing alternatives to be evaluated against agreed-upon standards. The criteria that should be used to make organization design decisions are the organizational capabilities that will differentiate the organization and help it execute its strategy. Therefore, the terms organizational capabilities and design criteria can be used interchangeably.

Organizations compete on the basis of different strategies and different capabilities. For example, a pharmaceutical company developing novel prescription drugs requires ...

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